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Age-Restricted Apartment Complex Fetches $12M

TIGARD, OR-Using a 78% loan, a Portland-based limited partnership acquires the King City Apartments here with plans to make significant improvements to the 16-building complex over the next three years.

By Brian K. Miller | Updated on December 18, 2004

TIGARD, OR-A Portland based limited partnership has acquired an age restricted 196-unit apartment complex here this month for about $12 million. The partnership includes Famiglia LLC (Franklin D Piacentini) and Summit Realty Group (D. Michael McKenna), according to public records.King City Apartments is a 16-building complex located in the planned adult community of King City, 11 miles southwest of Portland on Highway 99W. The apartments were built between 1968 and 1972, shortly after King City was incorporated in 1966. The community is age-restricted; at least one occupant in each household must be 55 or older.The borrower, officially King City Associates LP, plans to make significant capital improvements over the next three years. Improvements will include re-roofing all buildings, adding washer/dryer sets to most units and making landscape upgrades, seismic upgrades and external improvements. The acquisition was made with a loan from HomeStreet Capital. The financing was arranged by Sue Carlson of HomeStreet’s Portland office through the Fannie Mae DUS program. Carlson tells GlobeSt.com the borrower was able to obtain a 78% loan because the property has been performing well. The loan has a 30-year amortization and the first two years are interest free, says Carlson. The debt coverage ratio is 1.25x.

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